LAS VEGAS -- Casino operator Boyd Gaming Corp. lost money in its second quarter, weighed down by higher preopening expenses and costs related to flooding along the Mississippi River.
The company lost $3 million, or 3 cents per share, for the three months ended June 30. That compares with a profit of $3.4 million, or 4 cents per share, a year earlier. Adjusted earnings were 1 cent per share, which excludes the preopening expenses, flood costs and other items. Analysts predicted earnings of 2 cents per share, according to a poll by FactSet.
Revenue slipped 1 percent to $574.4 million from $578.4 million on a slight decline in gambling revenue. The company also said its results were hurt by the temporary closing of Sam's Town Tunica in Mississippi in May because of flooding along the Mississippi River. Many casinos in the region had to temporarily close properties along the Mississippi during the flooding, leading to lost revenue, cleanup costs and other expenses. Wall Street expected higher revenue of $578.1 million. Boyd said Wednesday that revenue for its Borgata joint venture in Atlantic City, N.J., fell 2.2 percent, while revenue for the Midwest and South was basically flat. Revenue for downtown Las Vegas properties rose 2.5 percent, while revenue from the Las Vegas locals segment -- which includes properties that draw people who live near Las Vegas -- dipped slightly.
On Friday New Jersey casino regulators gave MGM Resorts International another year to sell its half of the Borgata Hotel & Spa in Atlantic City, N.J. MGM Resorts has decided to sell its stake in the property instead of cutting ties to Pansy Ho, whose father is suspected by New Jersey regulators of having organized crime ties to Chinese gangs. MGM and the family of Pansy Ho deny the allegations. Boyd has passed on buying out MGM's share.
(Copyright 2011 by The Associated Press. All Rights Reserved.)